Papa John's Announces Key Operating Assumptions and Earnings Guidance for 2012
Company Raises 2011 Earnings Guidance
Highlights
-
2011 earnings per share range increased to
$2.15 to $2.20 -
Projected 2012 earnings per share of
$2.33 to $2.43 - Projected 2012 North America system-wide comparable sales increase ranging from 1.5% to 2.5%
- Projected 2012 International comparable sales increase ranging from 1.5% to 3.5% and International total system-wide sales increase ranging from 20% to 25%
-
Projected 2012 worldwide net unit openings ranging from 240 to 280
(110 to 130 net openings for
North America and 130 to 150 net openings for International)
"Our brand continues to perform very well in the marketplace as the Papa
John's team executes against our long-term growth plan," commented Papa
John's Founder, Chairman and Chief Executive Officer,
Significant 2012 Operational Assumptions
North America Restaurant Sales —
International Restaurant Sales — International comparable sales, presented on a constant-dollar basis, are expected to increase 1.5% to 3.5% in 2012. International comparable sales can be negatively impacted in a substantial number of emerging markets where second year sales for any given restaurant are compared against an unusually high "grand opening" level of first year sales. International comparable sales can also be positively or negatively impacted by significant levels of currency inflation or deflation within a given country. Total sales growth for international restaurants, including the 53rd week of operations, is expected to range from 20% to 25% in 2012, due to new unit growth and the expected comparable sales increase.
Worldwide Net Unit Growth — Worldwide net unit growth in 2012 is
expected to be in the range of 240 to 280 units, consisting of a range
of 110 to 130 net new units for
Revenues — Total consolidated revenues are expected to increase
6% to 7% in 2012, including an increase of approximately 2% resulting
from the 53rd week of operations. The increase of 4% to 5%,
excluding the 53rd week of operations, is expected to result
primarily from the projected
Marketing Incentive Contribution — In connection with a new
multi-year supply agreement, the company will receive a one-time
marketing incentive payment from a supplier in the first quarter of
2012, which the company will contribute to the Papa John's
53 Week Year — The 2012 fiscal year will consist of 53 weeks. The
impact of the 53rd week of operations is expected to increase
earnings per share by approximately
Pre-tax Income Margin — Consolidated pre-tax income margin in 2012 is expected to approximate or slightly exceed 2011 levels, including the negative impact of the one-time marketing incentive contribution discussed above.
Capital Expenditures — Capital expenditures for 2012 are expected
to approximate
Share Repurchase Activity
The company announced an increase of
2011 Guidance Raised
The company raised its diluted earnings per share guidance for 2011 to a
range of
Annual Meeting Date Scheduled
Papa John's today announced that its 2012 Annual Meeting of Stockholders
will be held on
Forward Looking Statements
Certain matters discussed in this press release and other company communications constitute forward-looking statements within the meaning of the federal securities laws. Generally, the use of words such as "expect," "estimate," "believe," "anticipate," "will," "forecast," "plan," "project," or similar words identify forward-looking statements that we intend to be included within the safe harbor protections provided by the federal securities laws. Such statements may relate to projections concerning business performance, revenue, earnings, contingent liabilities, commodity costs, margins, unit growth and other financial and operational measures. Such statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions, which are difficult to predict and many of which are beyond our control. Therefore, actual outcomes and results may differ materially from those matters expressed or implied in such forward-looking statements.
The risks, uncertainties and assumptions that are involved in our
forward-looking statements include, but are not limited to: changes in
pricing or other marketing or promotional strategies by competitors
which may adversely affect sales, including an increase in or
continuation of the current aggressive pricing and promotional
environment; new product and concept developments by food industry
competitors; the ability of the company and its franchisees to meet
planned growth targets and operate new and existing restaurants
profitably; general economic and political conditions and resulting
impact on consumer buying habits; changes in consumer preferences;
increases in or sustained high costs of food ingredients and other
commodities, paper, utilities, fuel, employee compensation and benefits,
insurance and similar costs (including the impact of federal health care
legislation); the ability of the company to pass along increases in or
sustained high costs to franchisees or consumers; the impact of current
or future legal claims and current or proposed legislation impacting our
business; the impact that product recalls, food quality or safety
issues, and general public health concerns could have on our
restaurants; currency exchange and interest rates; credit risk
associated with parties to leases of restaurants and commissaries,
including those Perfect Pizza locations formerly operated by us, for
which we remain contractually liable; and increased risks associated
with our international operations, including economic and political
conditions in our international markets and difficulty in meeting
planned sales targets for our international operations. These and other
risk factors are discussed in detail in "Part I. Item 1A. - Risk
Factors" of the Annual Report on Form 10-K for the fiscal year ended
Headquartered in
Papa John's
Chief
Financial Officer
Source: Papa John's
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